Fourth Tranche of National Subsidies (¥69 Billion) Coming in October

CNBC AI News, August 1 – Beijing is ramping up efforts to stimulate domestic consumption with a fresh injection of funds dedicated to trade-ins of consumer goods, according to a report by CCTV News citing a press conference held today by the National Development and Reform Commission (NDRC).

A spokesperson for the NDRC announced that the third batch of special treasury bonds earmarked for the “trade-in” initiative, totaling 69 billion yuan, has been successfully distributed. The fourth and final tranche of 69 billion yuan is slated for release in October, completing the planned annual allocation of 300 billion yuan.

Moving forward, the NDRC, in collaboration with the Ministry of Finance and the Ministry of Commerce, will be responsible for overseeing local governments to ensure matching funds are committed and that detailed spending plans are in place. This collaborative effort aims to ensure the allocated capital is utilized effectively and consistently through the end of the year.

Furthermore, authorities are intensifying scrutiny of product quality and pricing to prevent opportunistic price hikes, subsidy fraud, and other forms of abuse, ensuring the policy is implemented fairly and transparently.

This initiative builds upon a program launched in January by five departments, including the Ministry of Commerce, outlining specific subsidies for electronics upgrades.

The program offers subsidies to individual consumers purchasing new smartphones, tablets, and smartwatches/bands priced under 6,000 yuan.

Consumers can claim a subsidy for one item per category, receiving a 15% discount on the final sales price after accounting for manufacturer, distributor, and mobile carrier discounts, capped at a maximum of 500 yuan per item. This provides a tangible incentive for consumers to upgrade their devices, potentially boosting sales for electronics manufacturers and retailers alike.